Based in Australia, Billabong is a well-known manufacturer and retailer of action sports products.
On January 14, 2013 the company made a bid for Billabong International Ltd. together with Altamont Capital Partners.
Billabong has sold assets, closed stores and replaced its chief executive in an attempt to revive the business.
In Sydney, Billabong shares tumbled 44% after the surfwear and sports clothing maker issued a bleak trading update.
If anything, Merchant has been pressing his stake, doubling down on his Billabong shares in 2012 after they tumbled in price.
FORBES: Billabong's Woes Make Rough Surfing For Gordon Merchant
Yet Billabong, launched by Merchant as a handmade-boardshorts business in 1973 with his then wife, Rena, is still appealing to big investors.
FORBES: Billabong's Woes Make Rough Surfing For Gordon Merchant
In the latest case, police say there had been no previous sightings of crocodiles in the area, and the community believed the billabong was safe.
BBC: Fears for Australia missing girl after crocodile attack
Merchant wants to remain involved with Billabong, although he has other interests.
FORBES: Billabong's Woes Make Rough Surfing For Gordon Merchant
And, if acquired, Billabong would be another such situation as its financial performance has been weak in recent years leading to management turnover.
The girl was last seen being dragged under the water by the crocodile, which had also attacked a man who was with her in the billabong.
BBC: Fears for Australia missing girl after crocodile attack
Surfwear firm Billabong is to enter takeover talks with a consortium led by its former US boss Paul Naude and private equity firm Sycamore Partners.
"There is no guarantee that the proposed transaction will proceed, and neither the Sycamore consortium nor Billabong is under any obligation to proceed, " it added.
But even if that investment flowers and Billabong gets a second good ride, it will take some primo swells to put this kahuna back in the biggest money.
FORBES: Billabong's Woes Make Rough Surfing For Gordon Merchant
Billabong might have too much debt to make it worthwhile.
FORBES: Billabong's Woes Make Rough Surfing For Gordon Merchant
And he branched out by launching the Golf House retail chain in 1986 and pursued partnerships to open single-brand stores for such makers of active-lifestyle clothing as Lacoste, Billabong and Quiksilver.
But TPG walked away from Billabong in October 2012.
FORBES: Billabong's Woes Make Rough Surfing For Gordon Merchant
Billabong said the 10-day exclusivity period of takeover talks would allow Sycamore to engage an "internationally recognised accounting firm to complete a confirmatory quality of earnings analysis, typical of an acquisition debt financing".
If the transaction were to happen (final bids are due this week), VF Corp. would incorporate the Billabong surf brand into its portfolio leaving other brands owned by the Billabong International to Altamont Capital.
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